IDEAS home Printed from https://ideas.repec.org/a/taf/ijecbs/v7y2000i1p27-46.html
   My bibliography  Save this article

A New Approach to Estimating Damages in Mass Torts

Author

Listed:
  • Atanu Saha
  • Lynette Hilton

Abstract

Damage estimation in mass torts involving hazardous or defective products is often complicated by the unknown time-profile of disease incidence or failure rate. Because these cases involve diseases with long latencies or involve products that fail after years of productive use, estimation of the defendants' future liability stream requires a model that can predict how the failure rate or the onset of the disease will change over time.This paper proposes such a model. The estimation technique allows one to compute the 'excess risk' attributable to the hazard or product defect distinct from the natural causes of failure or disease incidence and to calculate the defendants' future liability stream based on the estimates of failure or incidence rates. An application to product failure illustrates the working of the model.

Suggested Citation

  • Atanu Saha & Lynette Hilton, 2000. "A New Approach to Estimating Damages in Mass Torts," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 7(1), pages 27-46.
    • Handle: RePEc:taf:ijecbs:v:7:y:2000:i:1:p:27-46
    DOI: 10.1080/13571510084041
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/10.1080/13571510084041
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13571510084041?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bandopadhyaya, Arindam, 1994. "An Estimation of the Hazard Rate of Firms under Chapter 11 Protection," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 346-350, May.
    2. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
    3. Schmidt, Peter & Witte, Ann Dryden, 1989. "Predicting criminal recidivism using 'split population' survival time models," Journal of Econometrics, Elsevier, vol. 40(1), pages 141-159, January.
    4. Timothy J. Gronberg & W. Robert Reed, 1994. "Estimating Workers' Marginal Willingness to Pay for Job Attributes Using Duration Data," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 911-931.
    5. Donald Haurin, 1988. "The Duration of Marketing Time of Residential Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 396-410, December.
    6. Blank, Rebecca M., 1989. "Analyzing the length of welfare spells," Journal of Public Economics, Elsevier, vol. 39(3), pages 245-273, August.
    7. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-956, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saralees Nadarajah & Samuel Kotz, 2006. "On the New Model for Estimating Damages in Mass Torts - A Note," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(3), pages 461-462.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alex Grecu & Burton G. Malkiel & Atanu Saha, 2006. "Why Do Hedge Funds Stop Reporting Their Performance?," Working Papers 78, Princeton University, Department of Economics, Center for Economic Policy Studies..
    2. Burton G. Malkiel & Atanu Saha, 2004. "Hedge Funds: Risk and Return," Working Papers 98, Princeton University, Department of Economics, Center for Economic Policy Studies..
    3. repec:pri:cepsud:124malkiel is not listed on IDEAS
    4. Saha, Atanu & Hilton, Lynette, 1997. "Expo-power: A flexible hazard function for duration data models," Economics Letters, Elsevier, vol. 54(3), pages 227-233, July.
    5. Alex Grecu & Burton G. Malkiel & Atanu Saha, 2006. "Why Do Hedge Funds Stop Reporting Their Performance?," Working Papers 78, Princeton University, Department of Economics, Center for Economic Policy Studies..
    6. repec:pri:cepsud:104malkiel is not listed on IDEAS
    7. Burton G. Malkiel & Atanu Saha, 2004. "Hedge Funds: Risk and Return," Working Papers 98, Princeton University, Department of Economics, Center for Economic Policy Studies..
    8. Yang, Qing Gong & Temple, Paul, 2012. "Reform and competitive selection in China: An analysis of firm exits," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 286-299.
    9. Bandopadhyaya, Arindam & Jaggia, Sanjiv, 2001. "An analysis of second time around bankruptcies using a split-population duration model," Journal of Empirical Finance, Elsevier, vol. 8(2), pages 201-218, May.
    10. G. Donald Jud & Terry G. Seaks & Daniel T. Winkler, 1996. "Time on the Market: The Impact of Residential Brokerage," Journal of Real Estate Research, American Real Estate Society, vol. 12(3), pages 447-458.
    11. Bernard Fortin & Guy Lacroix, 1997. "Welfare Benefits, Minimum Wage Rate and the Duration of Welfare Spells: Evidence from a Natural Experiment in Canada," CIRANO Working Papers 97s-25, CIRANO.
    12. Allgood, Sam & Moore, Myra L. & Warren, Ronald Jr., 1997. "The Duration of Sheltered Homelessness in a Small City," Journal of Housing Economics, Elsevier, vol. 6(1), pages 60-80, March.
    13. Baek, In-Mee & Bandopadhyaya, Arindam, 1996. "The determinants of the duration of commercial bank debt renegotiation for sovereigns," Journal of Banking & Finance, Elsevier, vol. 20(4), pages 673-685, May.
    14. Guiso, Luigi & Jappelli, Tullio, 2002. "Private Transfers, Borrowing Constraints and the Timing of Homeownership," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 34(2), pages 315-339, May.
    15. Ira N. Gang & Thomas Bauer, 2000. "Return Migrants From Egypt: How Long Did They Stay Abroad?," Departmental Working Papers 199811, Rutgers University, Department of Economics.
    16. Mingliang Li, 2006. "High school completion and future youth unemployment: new evidence from High School and Beyond," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(1), pages 23-53.
    17. Vygodina, Anna V. & Zorn, Thomas S. & DeFusco, Richard, 2008. "Asymmetry in the effects of economic fundamentals on rising and falling exchange rates," International Review of Financial Analysis, Elsevier, vol. 17(4), pages 728-746, September.
    18. Francisco J. Gil & Maria Jesus Martin & Angel Serrat, 1994. "Movilidad en el mercado de trabajo en España: un análisis econométrico de duración con riesgos en competencia," Investigaciones Economicas, Fundación SEPI, vol. 18(3), pages 517-537, September.
    19. Edward A. Baryla & Leonard V. Zumpano, 1995. "Buyer Search Duration in the Residential Real Estate Market: The Role of the Real Estate Agent," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 1-14.
    20. Rolf Aaberge, 2002. "Characterization and Measurement of Duration Dependence in Hazard Rate Models," Discussion Papers 319, Statistics Norway, Research Department.
    21. Dario Sciulli & Antonio Menezes & José Vieira, 2012. "Unemployment Duration and Disability: Evidence from Portugal," Journal of Labor Research, Springer, vol. 33(1), pages 21-48, March.
    22. Bijwaard, Govert, 2011. "Unobserved Heterogeneity in Multiple-Spell Multiple-States Duration Models," IZA Discussion Papers 5748, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ijecbs:v:7:y:2000:i:1:p:27-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIJB20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.